(1) The following financial statements for Qorvo, Inc. and Subsidiaries, including the reconciliation of GAAP and non-GAAP financial information, reflect the financial position and results of operation of Qorvo, Inc. and Subsidiaries for the three and nine months ended January 2, 2016, the three months ended October 3, 2015, June 27, 2015, March 28, 2015, and as of January 2, 2016. The condensed consolidated statements of income for the three and nine months ended December 27, 2014 only includes the results of operations of RF Micro Devices, Inc. and Subsidiaries for these periods.
QORVO, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | ||||||||||||||||
|
January 2,
2016 |
October 3,
2015 |
June 27,
2015 |
March 28,
2015 | |||||||||||||
| GAAP operating (loss) income | $ | (13,213 | ) | $ | 18,039 | $ | (1,335 | ) | $ | (102,545 | ) | |||||
| Share-based compensation expense | 30,308 | 35,729 | 48,170 | 42,110 | ||||||||||||
| Amortization of intangible assets | 128,542 | 128,028 | 123,202 | 123,515 | ||||||||||||
| Acquired inventory step-up and revaluation | — | — | — | 72,850 | ||||||||||||
| Restructuring and disposal costs | 301 | 2,403 | 1,427 | 12,374 | ||||||||||||
| IPR litigation costs | 337 | 192 | 148 | 68 | ||||||||||||
| Acquisition and integration related costs | 4,955 | 5,589 | 10,415 | 20,077 | ||||||||||||
| Start-up costs | 3,835 | 3,496 | 3,710 | 1,105 | ||||||||||||
| Other expenses (including loss (gain) on assets and other non-cash expenses) | 1,850 | 1,348 | 2,078 | 35 | ||||||||||||
| Non-GAAP operating income | $ | 156,915 | $ | 194,824 | $ | 187,815 | $ | 169,589 | ||||||||
| GAAP net (loss) income | $ | (11,127 | ) | $ | 4,448 | $ | 2,036 | $ | 6,482 | |||||||
| Share-based compensation expense | 30,308 | 35,729 | 48,170 | 42,110 | ||||||||||||
| Amortization of intangible assets | 128,542 | 128,028 | 123,202 | 123,515 | ||||||||||||
| Acquired inventory step-up and revaluation | — | — | — | 72,850 | ||||||||||||
| Restructuring and disposal costs | 301 | 2,403 | 1,427 | 12,374 | ||||||||||||
| IPR litigation costs | 337 | 192 | 148 | 68 | ||||||||||||
| Acquisition and integration related costs | 4,955 | 5,589 | 10,415 | 20,077 | ||||||||||||
| Start-up costs | 3,835 | 3,496 | 3,710 | 1,105 | ||||||||||||
| Other expenses (including loss (gain) on assets and other non-cash expenses ) | 1,850 | 1,348 | 2,114 | 809 | ||||||||||||
| Gain on investment | — | — | (4,025 | ) | — | |||||||||||
| Adjustment of income taxes for cash basis | (10,980 | ) | 2,050 | (18,708 | ) | (112,232 | ) | |||||||||
| Non-GAAP net income | $ | 148,021 | $ | 183,283 | $ | 168,489 | $ | 167,158 | ||||||||
| GAAP weighted average outstanding diluted shares | 139,343 | 150,783 | 154,461 | 150,470 | ||||||||||||
| Diluted share-based awards | 4,756 | — | — | — | ||||||||||||
| Non-GAAP weighted average outstanding diluted shares | 144,099 | 150,783 | 154,461 | 150,470 | ||||||||||||
| Non-GAAP net income per share, diluted | $ | 1.03 | $ | 1.22 | $ | 1.09 | $ | 1.11 | ||||||||
